Staffing 360 Solutions Announces Financial Results for the Fiscal Third Quarter
April 23 2014 - 1:01PM
Marketwired
Staffing 360 Solutions Announces Financial Results for the Fiscal
Third Quarter
Company Reports Revenues of $16.9 Million in the Quarter Ended
February 28, 2014
NEW YORK, NY--(Marketwired - Apr 23, 2014) - Staffing 360
Solutions, Inc. (OTCQB: STAF), a public company engaged in the
provision of international staffing services with a primary focus
on the finance and accounting, administrative, engineering, IT and
cybersecurity verticals, today released its financial results for
its fiscal third quarter ended February 28, 2014.
Summary of the Fiscal Third Quarter Ended February 28, 2014
- Net revenues increased to $16.9 million, compared to $70,000 in
the third quarter ended February 28, 2013.
- Gross profit increased to $3.5 million, compared to $31,000 in
the third quarter ended February 28, 2013.
- The net loss increased to $1.8 million, compared to $786,000 in
the third quarter ended February 28, 2013.
Analysis of Financial Results
Net revenues increased to $16.9 million in the fiscal third
quarter ended February 28, 2014, compared to approximately $70,000
for the same period in 2013. Gross profit increased to over
$3.5 million in the fiscal third quarter, compared to approximately
$31,000 for the same period in 2013. This significant increase
in revenue and gross profit was principally a result of the
Company's accretive acquisition strategy, including a total of four
acquisitions since the fiscal third quarter last year.
The Company's net loss increased to $1.8 million in the fiscal
third quarter ended February 28, 2014, compared to approximately
$786,000 for the same period in 2013. The net loss was
primarily attributable to increased operating expenses, including
an increased workforce due to the acquisitions made throughout the
year, as well as office expenses related to the Company's
subsidiaries, four of which did not exist in 2013. In
addition, the Company incurred substantial one-time costs
attributable to the acquisitions.
"This has been a significant quarter for our company in nearly
every respect," stated Brendan Flood, Executive Chairman of
Staffing 360 Solutions. "Although our bottom line still shows a net
loss, these consolidated results only include a portion of Initio's
numbers due to the timing of the acquisition. We believe
consolidated results will continue to improve in future quarters as
these acquisitions are more fully reflected. Our success to-date
has been driven in large part by our accretive acquisition
strategy, which has fueled our growth from less than $100,000 in
revenue in the fiscal third quarter of 2013, to having completed
four acquisitions and achieved an estimated current run rate over
$100 million in revenues."
During the recent fiscal year, Staffing 360 Solutions completed
the acquisitions of Cyber 360 Solutions (f/k/a The Revolution Group
Ltd.), Control Solutions International Inc., Initio International
Holdings Limited (renamed Staffing 360 Solutions Limited), as well
as Poolia UK. It is important to note, however, that these
consolidated quarterly results only include two months -- or
approximately 2/3 -- of Initio's financial results since it closed
on January 3, 2014. Also, these results do not fully reflect
the Company's most recent Poolia UK acquisition, which closed on
the last day of the third fiscal quarter ended February 28,
2014. The Company's fourth quarter numbers will more fully
reflect the Company's accretive acquisitions.
"Our consolidation strategy is ideally suited for the highly
fragmented temporary staffing industry, especially considering our
team's capital markets expertise," added Alfonso J. Cervantes, Vice
Chairman and President. "The pure size of the acquisitions we
have completed to-date, combined with our existing operations,
currently places us in the top 30 public staffing companies in the
United States. As we continue to extend our reach in countries
throughout the world, we look forward to relaying our exciting
developments and important milestones with our loyal
shareholders."
Highlights of the Fiscal Third Quarter and Subsequent Events
- Completed the acquisition of Initio International Holdings
Limited (renamed Staffing 360 Solutions Limited) on January 3,
2014, which included the Monroe Staffing division in the US and
Longbridge Recruitment division in the UK. Initio generated
approximately $80 million in revenues during 2013.
- Appointed staffing industry veterans Brendan Flood as Executive
Chairman and Matt Briand as Chief Executive Officer. Included
in Mr. Flood's significant industry experience was his role as the
former CFO of the Americas for Monster Worldwide, Inc., which
generated $1.8 billion of annualized revenue in 2002.
- Completed the acquisition of Poolia UK Ltd. on February 28,
2014, a subsidiary of Poolia AB, a publicly listed company on
NASDAQ OMX Stockholm.
- Moved the Company's UK operations to new corporate offices in
London, combining the Company's Longbridge Recruitment and Poolia
UK divisions into one location. Rebranded the combined UK
division Longbridge 360.
- Completed a $1.7 million convertible note financing and $10
million equity private placement to continue to fund the Company's
accretive acquisition strategy.
- Expanded the senior management team to include: Darren Minton
as the Company's new Executive Vice President; Wade Pearson, as the
Company's new Senior Vice President of Finance; and Nick
Koutsivitis, as Controller.
- Hired seasoned accounting executive Jeff R. Mitchell as the
Company's new Chief Financial Officer. Mr. Mitchell was the
former CFO of Select Staffing, where he led 40 acquisitions in the
staffing industry, which generated $1.3 billion in
revenue.
Mr. Flood concluded, "Staffing 360 Solutions has accomplished
quite a lot in the past quarter. As we continue to explore and
evaluate further acquisitions, we will be moving ever closer
towards our publicly stated mission of being a $300 million revenue
business within the next 18 to 24 months. This growth will
certainly result in more game changing announcements throughout
2014 as we leverage our existing expansion initiatives and
operational expertise, all while maintaining a steadfast commitment
to growth in revenues, growth in earnings and growth in long term
shareholder value."
About Staffing 360 Solutions, Inc.
Staffing 360 Solutions, Inc. (OTCQB: STAF) is a public company
in the global staffing sector engaged in the acquisition of
international staffing organizations with operations in the US,
Europe and India. As part of its targeted consolidation model,
Staffing 360 Solutions is pursuing broad spectrum staffing
companies in the IT, financial, accounting, healthcare and
cybersecurity industries. The Company believes the staffing
industry offers opportunities to create a successful public company
with a longer term objective of accretive acquisitions that will
drive annual revenues to $300 million. For more information,
please visit: www.staffing360solutions.com
Forward-Looking Statements
Certain matters discussed within this press release are
forward-looking statements including, but not limited to, new
agreements, the ability to enter into any additional acquisitions,
or the size of future revenue. Although Staffing 360
Solutions, Inc. believes the expectations reflected in such
forward-looking statements are based on reasonable assumptions, it
can give no assurance that its expectations will be attained.
Staffing 360 Solutions does not undertake any duty to update any
statements contained herein (including any forward-looking
statements), except as required by law. Factors that could cause
actual results to differ materially from expectations include
general industry considerations, regulatory changes, changes in
local or national economic conditions and other risks detailed from
time to time in Staffing 360 Solutions' reports filed with the SEC,
including quarterly reports on Form 10-Q, reports on Form 8-K and
annual reports on Form 10-K.
Company Contact: Staffing 360 Solutions, Inc. Alfonso J.
Cervantes Vice Chairman and President 212.634.6410 Email
Contact Financial Communications: Trilogy Capital Partners, Inc.
Darren Minton President 212.634.6413 Email
Contact
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